Renting vs Buying A Home: Which Is ACTUALLY Cheaper?

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IS IT CHEAPER TO BUY OR RENT A HOME?
DOWN PAYMENT:
In most situations, lenders will require you to deposit 10-20% of the purchase price in order to get approved.
MORTGAGE INTEREST RATE:
The cost of borrowing money the highest it’s been in more than 20 years, at just over 7%.
PROPERTY TAXES:
This ranges from 0.3% if you’re in Hawaii to as high as 2.5% per year if you’re in New Jersey.
INSURANCE:
According to Bankrate, the average home insurance costs $1428 per year for a $250,000 home - but, when 66% of homes are said to be underinsured, expect that you’ll pay more like $2200 for a proper policy.
REPAIRS AND MAINTENANCE:
Over the long term, it’s recommended that you budget 1-2% of the property’s value, every year, for doing these normal repairs.
RENTING A HOME:
This is fairly easy to calculate: The price you pay is the price you pay - there’s really nothing fancy about it. However, according to a new analysis, in all but 4 major US Cities - renting is cheaper than the cost of buying.
After doing the math, here are the overall stats:
If you intend on living in your home for less than 10 years, then renting is likely the cheaper option. If you want to manage your cashflow without coming out of pocket a sizable amount of money, then renting is better. The same also applies if you want the flexibility to move on short notice.
However, if you plan on living in the same home for MORE than 10 years - buying is typically the better choice. If you want to remodel or upgrade your home - buying is better. And if you want to lock in your payments to invest in the area - buying is better.
My personal preference is that - if you’re going to buy something, get something that needs work, fix it up so that it’ll be worth more than what you paid - and then, use that as a buffer so you won’t come out of pocket in the event you need to sell on short notice.
Every situation is different and every area will have slightly different numbers - but, for the most part, this rule of thumb should hold true.
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[@GrahamStephan]

Thanks to Experian for sponsoring today's video! Sign up for the Experian Smart Money Digital Checking Account Today at www.experian.com/graham and get a $50 bonus when you set up direct deposit! Here is a link containing the source material for each piece of research cited. I do my best to make my videos as accurate as I can, and the additional resources should help anyone who wants to look into them further - enjoy: docs.google.com/spreadsheets/d/1g-yCRyWAreWSBoErcHYxp1wbMzYR1ssa5DdvAKSvM_Y/edit?usp=sharing

[@Billionaireben]

I've seen properties for rent in vegas cheaper than the mortgage payment would be, tempting to get one and be a small scale Hef but I'm finishing up my MBA and I'll have to think it over.

[@Ultrajamz]

How is youtube still this bad at detecting spam?

[@bobsacamano7653]

It all depends on where you live. In my area rent is almost the same as buying. It is even more expensive to rent when you consider the square footage.

[@gamesilver9627]

Im DCAing in ZRT55H$ as well. ETH heavier DCA and ALGO. Im taking your advice and starting Google tomorrow with a 50 dollar purchase and continuing Microsoft and Apple. VTI and VOO on another app and longterm portfolio. Here we go family!

[@noel4854]

I’ve been moving every 2-3 years exploring different states for the last 10 years. I would love to own but renting has made it easy to move where the jobs are. I’ve nearly doubled my starting salary doing the same job in different places.

[@user-es5jq6yy9l]

You can rent out your house and use that money for cheap rent

[@b2zap665]

I just started doing the exact same. On to my second state and still have several more states on my list. The current state I’m in is saving me hundreds a month on rent while paying me more than my previous state!

[@LizaLavolta]

how cool

[@farhank8336]

wont pay more taxes?

[@opbluestreak4546]

I just turned 18 and your content has given me massive value in establishing myself financially. Thank you, Graham.

[@GrahamStephan]

You got it!

[@Angryeddie14]

Use the knowledge to get ahead bro, I’m 26 in a couple weeks and you can’t believe how fast you can get ahead of you just keep your head down and put in that work

[@BF4ClanTBS]

He’s super good, when I was 18 I watched him and I was able to buy my first home at 20 years old and now at 24 we are renting it out and moved to our 2nd home. Especially his credit card tips are huge

[@wealth.harvest]

Renting’s like dating: No long-term commitment, but you never really get your deposit back

[@donttouchmysilver8202]

Depends where you are South buy, Cali rent

[@InternetUser._]

Unless you make a long term commitment to saving/investing the difference in rent Vs mortgage 🤷🏽‍♂️

[@brandontemple20]

I always get my deposit back and I leave the property nicer than I got it

[@hg2blackcat411]

​@@brandontemple20Same. I've always got mine back

[@702prodigy]

i did

[@matturner8]

I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.

[@ritalorrigan]

Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.

[@MarkGrimm8]

Given that we are not used to such volatile markets, the fact that the US stock market has been on its longest bull run in history helps to explain the widespread fear and enthusiasm. There are chances if you know where to look, as you noted when I earned more than $780k in the prior ten months. I hired a portfolio advisor because I knew I would need a solid plan to get through these difficult times.

[@ScottArmstrong12]

@@MarkGrimm8 My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.

[@ScottArmstrong12]

@@MarkGrimm8 I just looked her up on the internet and looked into her credentials. I wrote her a letter outlining my financial objectives and planned a call with her.

[@embededfabrication4482]

The bull run is an illusion, its the longest depeciation of your mone thats really happening​@MarkGrimm8

[@tarashrynchuk3118]

I want to rent forever! I pay $1700 a month for an ocean front apartment vs $5500 average monthly mortgage payment for some creepy house out there in boonies. I live off one paycheck and save the second. Maxed out on my 401k and built a decent QQQ portfolio. Why to own and be broke?

[@targetegrat]

I'm jealous. I just saw the QQQ alert on stock app. Nice work.

[@johnyang1420]

Way to go!!!

[@skeletonbeats6483]

That’s great man, where I live currently the rent for a crappy one bedroom is around the same as a mortgage of a 3 bed two bath. It’s wild how different the housing market is from place to place.

[@d.a.6293]

Depends on where you live.

[@wadej769]

Same. Also been increasing my mix of div stocks / bonds now making almost enough on my dividends to pay my monthly Rent 👍🏻

[@farhank8336]

I owned all my life and sold it and renting now. soo much peace of mind knowing I can get up and leave anytime. and Not worrying abouy repairs!

[@johnyang1420]

Amen buddy

[@TravelingwithJenny]

We are thinking of doing the same!

[@eliramirez9958]

😂

[@moneycessity]

Renting vs buying should be mostly a lifestyle decision as opposed to an investing decision. Consider factors like size requirements, location, cost, and duration.

[@tony_5156]

I remember when people treated homes like homes and not like a investment of stock Greed is rampant in this world and the blue collar man is taking the brunt of its consequences

[@SMLYTPMovies]

I’m currently renting. I’ve found that at least for a couple years, renting is better. If you’re looking for a much longer term investment, buying would be better. I’m 21, and don’t know where I’ll end up being at in 2-3 years. So right now, renting is best. Once I come to figure out where I want to be, I’ll be making a down payment.

[@That__Vato]

That's respectable

[@herbythechef7624]

Yeah when youre that young you dont need to tie yourself down yet. When you wanna settle thats when id buy

[@Roach7054]

That is why no one will remember your name

[@bluckabang7858]

Buy a house now, rent out the other rooms. When you end up moving in the future, buy a new home. Ownership is always better over any significant period of time.

[@alexkimball6118]

You don't necessarily have to be stuck if you buy a house. If you decide to move in the future you can hire a property management company to rent the house out if it doesn't make sense to sell.

[@edwardusxx]

Right now the DEX has a huge glitch If you are swapping you are getting like x 7 I done a vldeo

[@ThomasP7572]

I prefer STR and ARC personally

[@mayaleex3]

Thank you soooo much for doing all of the research and breaking down the numbers in a realistic way to make it easier for us to visualize and understand :)

[@schmitty69]

"Renting a home is the way to go. You will own nothing, and you will be happy" ~BlackRock

[@GrahamStephan]

Uh oh…

[@schmitty69]

My house is paid for and I'm not giving it up🤣

[@electron7659]

​@@schmitty69You may own the deed to the house, but you'll never own the property. As soon as you stop paying property taxes, your home will be confiscated by your government. Not only will you be paying property taxes for the rest of your life, which can increase over time, but the older the house gets, the more susceptible it will be to needing repairs and/or replacements. --> $$$$$$ Sure, you may own the building free and clear, but it's not like you can simply take your home elsewhere to escape the property taxes. It's stuck on that government property. So it's not as though you can keep your house if you choose not to get robbed by the government...........oops, I mean choose not to pay the property taxes. Better stick to the idea of "You will own nothing and you will be happy" -- Black Rock (Clause Schwab)

[@ithinkihaveebola5238]

The likelihood of that ever happening is slim to none. U sound super jealous cause someone paid off their home and they're not paying a monthly rent for the rest of your life like u. I'd rather listen to a financial advisor/ accountant before listening to ur jealous scenario that will most likely never happen

[@absentmindedprofessor2005]

We just closed on our first home! We decided to buy for a few reasons. Rentals are nice for the reasons you’ve mentioned but we’ve had to move every few years as the our lease has gone up significantly when it’s time to renew in this area (our last place wanted a $500/month increase!) Buying means our monthly payment stays about the same and we are building equity. One thing you didn’t mention that surprised us at first is how much additional money you need to bring to the table when buying a house for closing costs! We had enough saved up for a 20% down payment but weren’t ready for all those surprise costs at first.

[@bitcoingoblin8037]

Congratulations on your first home! Good news is interest rates will probably go down again sometime within the next few years and you can refinance. So instead of having to pay more rent every year... you'll pay the same every year until you refinance, at which point you'll pay less.

[@Cloudyconfusion]

Ohhh I didn’t know that about closing costs! Scary as I’m looking into buying homes rn! Thank you for the heads up!

[@Kelly_Explores]

I’m getting close to making an offer on a house and I’m worried about all of these sneaky closing costs! How much were they for you, if you don’t mind me asking?

[@brycethomas6080]

Great timing with houses being priced at double what they were a couple years ago and the interest rate joke.

[@Kelly_Explores]

@@brycethomas6080 yup, terrible timing, but can’t predict the market or wait forever.

[@abidulhussainsadi9679]

Super cool video ! Do you think amazons ZRT55H will pump before ETH ? I ask myself if there is a pattern in the order of the altcoins pumps.

[@bjkiddawaves6925]

Love the ZRT55H$ content. I think this project is just as essential as HBAR and they both will be great movers

[@nathongknight]

Just got hit with a broken AC, fridge, and multiple leaks. So far 6k in and I still have a leak. Still prefer home ownership though.

[@GrahamStephan]

Yikes! It happens…

[@alankeyes8267]

Yeah my experience is that when things break they actually get fixed when I own the house. When the landlord has to pay there is no rush at all. You can live without it.

[@electron7659]

​@@alankeyes8267Depends on what type of landlord you're dealing with. There are some who are very responsive and take care of their tenants. It's the luck of the draw. Yep, life is just full of gambles isn't it. 🤷

[@MortgageTalkwithgeorgeneufeld]

The key is definitely how long you plan to own the home. Short-term ownership really doesn’t make sense because you can't really expect quick appreciation. But I love the tip at the end. Buy a home that needs some work, use a purchase plus improvements mortgage to create some equity. Great video.

[@DemisDays]

Beautiful video Graham!! So many people are still stuck in the old mindset that buying is always good, but there’s so much data to show that’s not necessarily the case!!

[@lesliesmith7312]

And when you rent you need a security deposit, first and last months rent, and the rent can be raised every time you renew your lease, which is getting ridiculous around here

[@eleternocat5113]

IT DEPENDS WHERE YOU LIVE FIRST, SECOND THE INTEREST RATES AT THE MOMENT. RIGHT NOW IS OBVIOUSLY NOT THE TIME TO BUY A HOME

[@davisj.miller1541]

Stephan, I thank You for all the valuable videos! I began investing at the age of 35, primarily utilizing my hard work, dedication and with the assistance of my financial advisor, Christy Val D'souza. Now at the age of 48, I am delighted to say that my retirement income has grown enough to take me through my later days in life. So don't hesitate to take action when you can. Remember, it's not about achieving wealth quickly, but rather about building wealth consistently and persistently.

[@davisj.miller1541]

That is exactly my point, you need the assistance of a professional in whatever investment you want to embark on. For me it is a lot safer that way.

[@davisj.miller1541]

Yes, just as I said, *CHRISTY VALLEN D'SOUZA* is the best stockbroker, investment portfolio manager and financial advisor I know. This is because I have tested her services firsthand. She has never failed me or anyone I recommended to her. She is very trustworthy.

[@davisj.miller1541]

look up her complete name on the web, confirm her details and get in touch with her.

[@fatguy9]

The nice thing about buying a home though is after 30 years when in retirement you wont have to worry about rent increases since youll probably be on a fixed income, also you can pass it on to your kids as a going away gift

[@roam2rome414]

True. That's assuming you plan to live there that long!

[@carolynmerritt7100]

Rent, I can save a lot of funds. Buying sucks up my funds: that's a lot of money.

[@albert93231]

You Still have properties Taxes that's were things get out of control and don't get me started on school taxes that are ridiculously expensive

[@fatguy9]

@@roam2rome414 even if you move 15 years later youd be locked into the same mortgage as 15 years ago so you’d have a decent margin if renting at the normal rates 15 years in the future

[@fatguy9]

@@carolynmerritt7100 It might depend where you live but renting where im at is just slightly less than buying and that difference to me is worth it since after years youd have some money locked into a house compared to renting it and not having anything after years of living there

[@marcusgilmore4311]

What a tough decision in these times. The deciding factor for me would be whether the property is uniquely investable. If price, curb appeal, and age are good and you’re not in a bidding war. Basically if you can find a amazing deal buy and if not rent.

[@ryaneverett830]

But the thing is, if you rent a home, it may be affordable for a time, but the landlord will most likely try to increase your rent every few years, and the cost could become unaffordable at some point. Also, if you own a home with a 30 year mortgage, the goal is usually to pay off the mortgage before retirement, in which case you can essentially have free housing throughout your retirement. If you rent, you will be paying for your housing for life, and the cost will continue to increase. You also can’t really make that home your own. Anything you want to do has to be approved by the landlord. Not to mention that if you have kids and rent your home, when you die, you will have no asset to give them.

[@djdshhsghg9215]

Does free housing include maintenance costs and property tax?

[@ryaneverett830]

No, you’ll have to pay those costs, but the price of home insurance and taxes will be a fraction of the cost of rent. If the rent is 2400 now for a home, the cost 30-40 years from now at retirement age will be much higher. Also, if you buy the home, you can rent out a spare bedroom if you have one, and use that money to cover some of the costs. There are many advantages to owning a home as long as you buy a home that you can realistically afford. The mistake many make is they overspend on a home and spend the majority of their income on a home that wasn’t in their budget and they shouldn’t have been approved for

[@penguingobrrbrr353]

@@ryaneverett830 you do realize as time goes on more and more people can't afford housing and sooner or later there will be people paying rent for the rest of their life. Thats worldwide problem. With higher inflation and higher housing prices... even if you earn a good salary you probably wont be able to afford one. I mean in the next 20 years it can happen if we keep the same pace.

[@tz1494]

I am in illegal migrant and I get free housing. I suggest all Americans move to Guatemala and re-enter as an illegal and get free welfare, insurance, school, housing.

[@asadb1990]

In a booming city, it always makes sense to buy. I was in ottawa and houses were below 300k before 2017. And by 2019 the houses went up by 50%. And during pandemic to now, prices are like 3x more.

[@user-sd2jv9ru6o]

Just showed this to my personal finance class. The students told me to like it. It was a great summary to our unit on housing.

[@LargeKepler]

i’m ngl the summary at the end was a good addition to the video. thanks for the content!

[@privettoli]

Before buying, I would be paying more each year and sometimes asked to leave cuz the landlord decided to move in. Buying gives you confidence and stability.

[@Misaka-gt5yj]

"What scenario does buying a home even make financial sense" The scenario where you will get evicted arbitrarily for "renovation" purposes. Yea, that scenario. Or the scenario where rent increases more than property tax every year.

[@Srinathji_Das]

Excellent video! Perfect presentation with nice visuals and great narration.

[@andrewbanecker1460]

Smashed the like button - incredibly helpful in this environment

[@keciunseigbar2708]

Cant deny the fact that Amazons ZRT55H$ is the strongest bet to bring power back to this industry after we suffered FTX, Celsius, Tera and so on. Sure if they fail its done for good, but I dont see that the biggest tech company in the world would put e

[@ST3ADYxKICKS]

A major upside of owning over renting is that you can do whatever you want with and on the property. For me that freedom is worth whatever potential extra costs are.

[@melissaakey4631]

But that depends on your landlord. My landlord let me pay to repaint using my favorite colors and so far has let me make changes that I am willing to fund. My little rental home feels like my home and he has told me that he wants it that way because he wants a long-term renter. 😀

[@thedude5040]

If I was a landlord I would not allow pets. And no your printed piece of paper saying your mut is your crying pillow does not count as a medical use dogs.

[@LegDayLas]

And than there are HOA's.

[@inertiaforce7846]

​@@melissaakey4631As a landlord myself, I will say that I wouldn't approve these kinds of changes. However, my tenant has been there eight years and I'm keeping his rent nice and low because he keeps that cash flow coming to me.

[@roam2rome414]

Not if you live in an HOA (most, at least). You have to get approval to make changes to the exterior of your home. Forget it if you want to extend your patio or paint your house a different color, as an example.

[@TVHouseHistorian]

*I love your content, Fiola!*

[@zach_bellizzi]

Great video Graham! Very informational and I learned a lot. I'm a real estate agent here in Illinois and when I was looking at the "Worst Housing Markets For Growth and Stability", I saw Rockford IL and Elgin IL were listed. I can see why these were listed because I've sold homes in both of these towns 😅

[@GUNNER67akaKelt]

You buy: At the end of 30 years, you own a home. You rent: At the end of 30 years, your landlord owns a home.

[@sellthatsaas]

Really well done video, thank you Graham!

[@aarondidner-personal7843]

Love the summary in video description

[@jeremiahcrowley8178]

Recently bought a newer home and immediately had to replace the oven (leaking gas) and the sump pump that was nearly dying. Definitely cost’s that were not factored in the beginning! Thank god its a townhouse with minimal exterior costs

[@bettysmith4527]

Alas, it depends on your condo documents. Many condo owners are still responsible for replacement of decks and windows. Also, remember they can charge an assessment if they do not have enough money in reserves for a particular maintenance or repair cost! Condo ownership is not without headaches....

[@fino7561]

I have no problem renting my whole life until i retire and move out of country. No Idea why people would want to own a home. Just throwing money away.

[@bottle1211]

Well done thanks Graham.

[@robvollman]

I found this very helpful thank you

[@jasonsomerville1304]

Keep in mind that landlords don’t always keep their investment properties forever. If you’re renting month to month (not locked into a lease), and they decide to rent to someone else, sell (or lose the property to foreclosure), you’ve got 60 days to move. And if you don’t have savings, or your income hasn’t kept pace with inflation, you may not be in a position to rent the next house. Sadly, that’s how a lot of people wind up on the streets. Sure, renting is cheaper in this current market. But the piece of mind that comes with homeownership (when done right) truly is priceless.

[@everettminer]

This was a hell of a video. Thanks Graham

[@GrahamStephan]

Glad you liked it!

[@make725daily1]

You're a genuine trailblazer! 🌌 - "Courage is vital, as success and risk are intertwined."

[@cyyylas]

Real estate market is something really intresting, compared to all the different markets, people will always need a place to stay. So thanks Graham for talking about it 💯

[@cashoutkevin]

this dood never met a homeless person lol become a farmer if your that worried about demand

[@xpallodoc1147]

You can stay at your parents place or a friends place we don’t all need our own places. Living in vans is becoming more popular and just parking it free places

[@jamierahardjo845]

It's cute how you can buy a house for $400K. I live in Vancouver, BC, Canada. Our lowest price for a house is $1 million lol

[@bigcahuna42366]

My 1,300 square foot, 54 year old three bedroom ranch home in a nice suburban area now cost quite a bit less per month than the majority of one bedroom apartments in my area. I bought my home in 2016 when homes were considerably cheaper. My monthly house payment (mortgage, property taxes, and insurance) with rebates and refunds comes out to around $900 per month. Average one bedroom apt in my area goes for about $1,400 per month. Yes, I have to cover occasional repairs and maintenance on the building/property which is in good shape, but even with that I still come out ahead. I'll never go back to renting. I now have much more space, freedom, and privacy for less money. Even when I compare apples to apples, my house was still cheaper than renting in 2016 by around $100 - 150 per month.

[@DiscoFang]

Here's the kicker though - you're applying the comparison using the 2016 price and mortgage payments. Do the sums based on current values. That is, work out the same rent/buy comparison but taking into account the lump of cash you would have for investment if you sold-up and rented. Then where you'd be in 5/10/15 years.

[@PGMP2007]

Thank you for making this video @GrahamStephan This are rough times for everyone and we need as much help as you can.

[@AshantiRashad]

This was very informative, thank you for sharing your thoughts on renting vs buying

[@natedogg9999]

Always good info Graham.

[@GrahamStephan]

Glad you think so!

[@rickrobinson8417]

A vid on buying vs building would be interesting!

[@Hunter-ox6kh]

Yes!!

[@dirtydinner6463]

I live in Utah. Average rent is $1,200 for a 1 bedroom apartment. A mortgage for a house in the worst area in town is going to start at $2,300. If you are buying in this market you are a fool.

[@GrahamStephan]

Yikes!

[@Mayochup191]

Not if you have roommates or people splitting costs with you

[@juantaverasiv741]

Comparing rent of a 1 bedroom (small square footage) to a house (much larger) is not a fair comparison. You'd need to compare renting a house to owning a house of similar size, or renting a 1 bedroom apt to owning a 1 bedroom condo.

[@dirtydinner6463]

@@juantaverasiv741 I’m comparing a 1 bedroom apartment that was built last year 700 sq ft to a 2 bedroom house that was built in the 1920s that is 950 sq

[@MoneyBabeAcademy]

I’m in the same situation but I live in central florida. It’s crazy how the housing market is insanely expensive in certain areas.

[@educationalviewsusa]

Very well broken down. Thank you!

[@SongsbyCharleneApril]

Thank you! Very helpful to see a breakdown of the costs and pros/cons of each option.

[@livephysiology]

Towards the end of the video, Graham mentions the pros of owing a house. Considering there are some benefits of home ownership that renting cannot provide, perhaps the question in relation to renting vs. owning is to ask is which has greater value as opposed to which costs more money? In some cases, individuals are aware there are cheaper options, but will prefer the more expensive option due to what it provides. This relates to the concept of what it truly means to be wealthy. Is it simply having money? Or is what the money is used for?

[@w0rd06]

buying may be more expensive at the moment but in the future it will absolutely save loads of money. My parents house that they paid a hair over 100k for 15 years ago is now worth as much as 250k depending on which website you look at. And their mortgage and utilities cost about as much as an apartment half the size, even with the absurd inflation and rising utility and insurance costs

[@nae4830]

Love this true breakdown.

[@EdgarLopez-ho7vt]

Thank you for the helpful information.

[@GrahamStephan]

Glad it was helpful!

[@maxinoume]

This might be one of your best/most informative videos ever!

[@GrahamStephan]

Thanks!!

[@lesliesmith7312]

You have to also factor in the fact the rent will go up regularly, sometimes jumping up hundreds more a month

[@GrahamStephan]

Totally. But maintenance, property tax, insurance, etc will also go up.

[@salo1129]

@@GrahamStephan That is the primary reason why rent goes up because the landlord has to cover the higher costs. When you are an owner, it's a liability because your property is a money pit, not an investment that we are so often led to believe.

[@davidbrayshaw3529]

Hundreds a month, thousands a year... how much over a lifetime?

[@Krullerized]

​@@salo1129Uh... renting isn't a money pit in essence?

[@VoxRatio]

@@Krullerizedit depends on how long you’re planning on living in a place, and of course if it’s a growing area or not.

[@marckuhnmak]

This is a great breakdown!

[@Travesty_INC]

Thank you Graham.

[@ExpansiveReviews]

I was looking into buying a home, but the costs are crazy. I found a townhouse I could rent for half as it would be to buy.

[@AssGaming]

Wouldn’t you want to take into account the rental application, security payment to rent and the first and last month of rent they normally ask for when you fill out your application? Some rentals will only give you a one year lease and require a big security deposit which can end up being pretty pricey too

[@kevinjurkiewicz9557]

Your security deposit you get back, your down payment/ closing costs you don’t

[@gerryr4224]

Well done Graham!

[@gusramirez2960]

Thank you!!

[@kathyazzari839]

As a homeowner in Southern California with a $650 mortgage payment (property tax and homeowner's insurance included) , I don't know how anyone can afford to own or rent anymore. My son owns a condo in L.A. but has a renter and now his girlfriend helping with that payment. I am grateful.

[@bix977]

Who buys a condo… waste of money

[@kathyazzari839]

@bix977 Apparently a lot of people. It's a home without a huge yard to upkeep. It fits his lifestyle and is in a good area. Seems like a personal choice to me.

[@raulgallardo5140]

Where in the world did you find a home for $650 a month in SoCal!

[@davidbrayshaw3529]

You've got to live somewhere.@@bix977

[@elizabethrufener7280]

@@raulgallardo5140 He must have bought many years ago!

[@Calm02]

It would be great if you made a video about the best states to buy your first house.

[@falconarrow5033]

Good job Graham

[@banksy1311]

Love this topic. Awesome video thanks Graham 🫶

[@markjou9799]

Renting is fun from ages 18-40. I really love bouncing from apartment to apartment every 1-3 years and meeting new people.

[@navyseal4000]

So long as it's not financially irresponsible, the best thing someone can do is whatever they feel is the lowest risk. The reason I believe this is because it allows more headspace to be freed for higher leverage activity, allowing for more earnings and making up any likely difference. This, of course, is only true for commission- based work, whether that's running ones own business, sales, or something else

[@Weirdomanification]

Interesting

[@nicolemoley28]

it sounds like with home buying, you will get your money back in the end. but you won't get back the time you spent on maintenance and upkeep or whatever. so what about the opportunity cost of time?

[@ImAlanSinclair]

Sheesh great video. Lots of things I never even thought about

[@GrahamStephan]

Thanks so much man! Hope all is well!

[@scarlet423]

I appreciate the info, my only thing for my own personal wants, is I don’t want some random person to be able to dictate what I can or can’t do in my home.

[@truthpoint6167]

Not only that but they also have the ability to enter “their” home whenever they feel like it! You can’t change locks without them getting a spare(invasion of privacy) maintenance MEN have always always come to a place I’ve rented unannounced that’s scary and creepy Asf considering they are strangers and you could be naked,sleep etc it’s not safe for random men to have access to your home without permission! Not only to mention they tell you NO PETS which could be used as security , they then restrict breeds so they won’t get attacked whenever they enter without permission! All to a place you paid $2600+ to move into under their conditional terms that they can flip whenever they want and all you can do is pray To God they aren’t slum Lords running Schemes to Con you out of money and your life! Renting is so conditional and it never favors the Renter only the Owner! Different strokes for different Folks .. always outweigh pros and cons!!

[@RumHamwich]

Thanks for the content Graham! I could probably listen to you read the dictionary and be entertained lol. Keep up the good work kind sir-

[@GrahamStephan]

Aw thanks!

[@FinanciallyFit93]

I rent a house for $2600 and a mortgage on the same house with taxes would be around $4000

[@Mayochup191]

Rent is $2600? Where is this?! New York?

[@a47_ftbledits]

Thank you Graham

[@GrahamStephan]

My pleasure!

[@jeffrounsville4961]

Great video

[@nothing563019]

whats even cheaper is renting a small apartment and not having kids

[@yurigadaisukida4457]

rent almost always goes up every year. A fixed rate mortgage is a life hack. You can also refinance later to lower your payment

[@antonioinoa6961]

‼️ only a landlord like the dude in the video would advocate why renting is better lol

[@yurigadaisukida4457]

@@antonioinoa6961 hes a realtor. his goal is to sell homes, so if he is advocating rent, I believe he is being sincere

[@themistoclesnelson2163]

Thanks Graham!

[@GrahamStephan]

My pleasure!

[@trevorsmith6978]

Has anyone ran the numbers on being homeless? Wondering if it's cheaper than renting.

[@nae4830]

It’d be interesting to explore how the average home costs 400K yet the average annual income is 65,423 (statistica). If that true aren’t people supposed to buy no more than 28-30% of a person’s annual income on monthly mortgage payment. That’s 19,627 or 1,635 per month.

[@amyyoshikawa7698]

Hi Graham I have one tenant renting a room for $950. Which she helped in paying my yearly property tax. My job is not making enough income. I do own my late parents home. I was going to sell my home to downsize but it’s too expensive to do that now. Great advice. 👍

[@conniesmith3837]

I'm in the same situation. My mom past away and I have her house now. 5b-3b. Demanding location. 10 minutes from the ski resorts. I don't make enough income for taxes, Insurance, utilities,etc. I'm scared to rent a room for fear I won't be able to get rid of them if they don't pay . I'm thinking of Reverse mortgage. Connie in Salt Lake City Utah 😓💜

[@B_More30]

If you do a revision to this, it would be great to expand on the costs for the renter. Renters insurance (very small amount I know), average length of stay when renting (higher end to offset those that just hop from year to year in their younger years) and then pair that with the average moving costs. Factor in security deposit as well, small opportunity cost, but it all adds up

[@sozbeyli9427]

Thx for info

[@jemparingansambisena2702]

Great video as always. I notice that you display the ZRT55H ! I just got some too!

[@BrianPurcell72]

So is converting a room to an office with a car displayed in it an upgrade or a downgrade if you have to sell?

[@GrahamStephan]

It was an empty space to begin with, so likely an upgrade.

[@907Trap]

Graham, can you make a video on list of best mortgage options? Like companies, type of mortgage, etc.

[@johnscarceforpresident1647]

Graham I turned 18 on Monday wanna guess what i did first thing in the morning? Got a credit card. Also gonna open a roth ira soon so i can get my $6500 in contributions in for this year Arent you so proud?!

[@GrahamStephan]

Well done!! Happy birthday as well!

[@Matt-wf7ry]

Both are obviously expensive but whether renting or owning is a better option is going be the dreaded it depends answer. For my current situation I know that renting is the best option considering what is on the market, the interest rates, price of homes similar to mine and not having the ability/desire to put 20% down when purchasing a home.

[@ThisMichaelBrown]

Great and fair analysis.....also add in how much does an individual enjoy maintaining a home....because you will have to work at it...and if it doesn't come easy to you, that can be a hard job. That is kind of a personal taste thing. Thanks for the vid!

[@4wardlobster]

Great video. Simplifies the true cost of ownership

[@stevenporter863]

Rent payment is the most you will pay. No suprises. A mortgage is the least you are going to pay.

[@DiscoFang]

Maybe on the surface but in the bigger picture you have it backwards. The current rent is the least you will pay for the rest of your life - it will increase every year. A mortgage today is the most you will pay for the rest of your life. Inflation works against renting.

[@stevenporter863]

@@DiscoFang Not my saying, a saying in the Finance world: meaning easier to do a budget as a renter with fixed annual costs. Maybe it is cheaper long term as an owner and maybe not; but you can't bake that into a budget or make decisions based on that since you wouldn't know until well after the fact.

[@DiscoFang]

@@stevenporter863Inflation is most definitely an assumption you can bake into forward plans. It’s compounding too so it has a hella effect long term.

[@schism-vs9697]

I own purely because of exit strategy. I bought my house in a rent-hot market, and I bought a property that I know could rent quickly and at a competitive rate. The ability to move from my current location and turn my house into a performing asset is 110% all of the reason I need to feel owning is correct for me.

[@raaltamirano]

I have never commented before but, this one was good. The timing was just right. BTW, I'm a homeowner in Cali.

[@MomoHitsujiOwO]

Thanks for the video Graham! New viewer here! Have you ever made a video on Condominiums and Townhomes? Are they worth it going into if owning a home is too daunting in certain areas? I would love to hear about what you think!

[@SK-lf1cr]

they dont apricate at the same levels that a SFH does, plus the HOA fees and being at the mercy of others may end up back firing

[@thedynamicsolo4232]

This is ludicrous. Any American used to be able to have a modest down payment, could get a decent house in a decent neighborhood for around 120K. While they were gaining skills and growing their income they could revamp the house with equity and move up to another place. That is gone. If the government can take that house at any time through eminent domain or a tax lien, why do it.

[@charisginn6932]

Lol, I misread this and thought the second sentence was present tense. Was gonna be like bruh where you live haha